However, the move into bankruptcy protection could dramatically hasten Chrysler's union with Fiat - with some analysts even speculating that a deal could be concluded within 24 hours.

"Their [debtors'] failure to act in either their own economic interest or the national interest does not diminish the accomplishments made by Chrysler, Fiat and its stakeholders, nor will it impede the new opportunity Chrysler now has to restructure and emerge stronger going forward," said the Obama administration spokesman.